1. Federal Student Loan Repayment Plans and the Repayment Estimator
June 2016

2. Today’s Topics Student Loan Basics
Repayment Options and Repayment Estimator
Postponing Payments, Default, and Discharge
Federal Student Aid Resources

3. Types of Loans and Loan Servicers
10/28/2017
Student Loan Basics
Types of Loans and Loan Servicers

4. National Student Loan Data System (NSLDS)
10/28/2017
Identify Your Loans
Federal
National Student Loan Data System (NSLDS)
Private
Credit Report
Financial Aid Office
Personal Records
Access NSLDS using your FSA ID at nslds.ed.gov

5. Federal Student Loan Programs
Direct Loan (DL) Program
Loans made by ED
Started in 1994, but was relatively small until 2010
Federal Family Education Loan (FFEL) Program
Loans made by banks, guaranteed by ED
Started in 1965, and was very big until program ended
Ended on June 30, 2010
Federal Perkins Loan Program
Loans made by schools

6. Federal Student Loan Types
10/28/2017
Federal Student Loan Types
Federal Student Loan
Subsidized Stafford
Unsubsidized Stafford
Parent PLUS
Grad. PLUS
Perkins Loans
Consolidation Loans

7. Interest Rate for Federal Loans
Interest Rate
(First Disbursed between July 1, 2016 and June 30, 2017)
Repayment
Additional Info
Federal Perkins Loan
5% Fixed
9 months after school
No interest charged while in school
Federal Stafford/ Direct Loan Undergraduate
Subsidized
3.76% Fixed
Unsubsidized 3.76%Fixed
6 months after school
Subsidized: no interest charged while in school Unsubsidized: interest accrues while in school
Federal Stafford/ Direct Loan Graduate/Professional
Unsubsidized 5.31% Fixed
Unsubsidized interest accrues while in school
Federal Direct PLUS Loan (Parents, Graduate & Professional)
6.31% Fixed Direct Lending Schools
May be deferred until 6 months after student drops below ½ time or 60 days after loan is fully disbursed
Interest accrues while student is in school

9. Loan Servicers CornerStone ESA/Edfinancial FedLoan Servicing (PHEAA)
10/28/2017
Loan Servicers
The following are loan servicers for federally held loans made through the Direct Loan and (FFEL) Programs:
CornerStone
ESA/Edfinancial
FedLoan Servicing (PHEAA)
Granite State – GSMR
Great Lakes Educational Loan Services, Inc.
MOHELA
Navient
Nelnet
OSLA Servicing
VSAC Federal Loans
The numbers are located on StudentAid.gov

10. Brookings and Perkins Repayment
Heartland ECSI is the loan servicer for these two loans
They can be contacted at
Their Website is
Little tip: your school code is W30 and your account number is typically your social security number

11. Repayment Plans and Consolidation
10/28/2017
Repayment Options
Repayment Plans and Consolidation 11

12. Repayment Plans Based on income Based on loan debt
10/28/2017
Repayment Plans
Based on income
Based on loan debt
Income-Based
Income-Contingent
Pay As You Earn
Revised Pay As You Earn
Standard
Extended
Graduated

13. Standard Repayment Plan
Under this plan, the borrower will pay a fixed amount that ensures they pay their loan(s) in full within the repayment period. Payments will be at least $50 per month.
For subsidized, unsubsidized, and PLUS loans, the repayment period is 10 years. For consolidation loans, the repayment period is years, depending on the borrower’s total educational indebtedness.
For borrowers who do not have consolidation loans, this plan results in the lowest total interest paid because the repayment period is shorter than it would be under any of the other repayment plans.

14. Extended Repayment Plan
Under this plan, the borrower will pay a fixed or graduated amount in an amount that will ensure that they pay their loans(s) in full within 25 years. Fixed payments will be at least $50 per month. Graduated payments will be at least the amount of interest that accrues in a month.
A borrower may choose this plan if:
He or she did not have an outstanding balance on a FFEL Program or Direct Loan as of October 7, 1998 or on the date they obtained a student loan after that date and
He or she has more than $30,000 in outstanding FFEL Program loans or more than $30,000 in outstanding Direct Loans.

15. Graduated Repayment Plan
Under this plan, the borrower will pay an amount that increases every two years and ensures that they pay their loan(s) in full within the repayment period.
For subsidized, unsubsidized, and PLUS loans, the repayment period is 10 years. For consolidation loans, the repayment period is years, depending on the borrower’s total educational indebtedness.
The minimum payment equals the amount of interest that accrues monthly. No one payment will be more than three times greater than any other payment.

16. Income-Driven Repayment Plans

17. Eligible Borrowers ICR (20%) Eligible loan IBR (15%)
10/28/2017
Eligible Borrowers
ICR (20%)
Eligible loan
IBR (15%)
Debt-to-income ratio
PAYE (10%)
Debt-to-income-ratio
Started borrowing recently
REPAYE (10%)

18. Eligible Loan Type Loan Type ICR IBR PAYE REPAYE
Loan received as student X
Loan received as parent
Consolidation (no underlying parent loans)
Consolidation (underlying parent loans)

19. Consolidation: www.StudentLoans.gov
Components
End Result
Direct Sub. Consol.
Direct Unsub. Consol.
Stafford
PLUS
Perkins
Direct Consolidation Loan
In-School
What happens when your loans are consolidated
No interest rate cap
Repayment of a Direct Consolidation Loan can begin 60 days after the loan is disbursed, or sooner. Your loan servicer will let you know when the first payment is due. The repayment term ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select.
Interest rate is weighted average of consolidated loans
Interest rate is rounded to nearest higher 1/8 of 1%

20. Loan Consolidation One lender and one monthly payment
10/28/2017
Loan Consolidation
One lender and one monthly payment
Flexible repayment options
Reduced monthly payments
Fixed interest rate
Loan Consolidation Information Call Center at
Note: Private loans are ineligible for federal loan consolidation
Including PERKINS & PLUS
Repayment of a Direct Consolidation Loan can begin 60 days after the loan is disbursed, or sooner. Your loan servicer will let you know when the first payment is due. The repayment term ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select.
You can apply for a Direct Consolidation Loan.
Submit an application and you will be contacts by a consolidation servicer

21. Income Sensitive Repayment Plan
10/28/2017
Income Sensitive Repayment Plan
Federal Family Education Loans (FFEL)
Low-income borrowers
Not applicable to those with Direct Loans
Payments increase or decrease based on income

22. Repayment Plan Summary
Billy Borrower has $40,000 in Direct Loan debt, which has a 6% interest rate. His income is $35,000, he is single, and he lives in Colorado. His income increases at a rate of 5% per year.
Repayment Plan
Initial Payment
Final Payment
Time to Repay
Total Paid
Standard
$444
10 years
$53,290
Graduated
$254
$762
$56,848
Extended - Fixed
$258
25 years
$77,316
Extended - Graduated
$200
$388
$84,115
Revised Pay As You Earn*
$143
$507
20 years
$71,172
Pay As You Earn*
$69,967
Income-Based*
$215
15 years, 6 mos.
$65,407
Income-Contingent*
$315
$373
15 years
$61,484
*Income-Driven Repayment Plans

23. Public Service Loan Forgiveness
120 qualifying payments
On Direct Loans
On qualifying repayment plans
While working full-time at qualifying employer
Borrower must also be employed by a qualifying organization at the time that the borrower applies for and receives PSLF
According to the IRS, the forgiven amount is not treated as taxable income
Details about the program: StudentAid.gov/public service

24. PSLF Requirements Don’t wait to enroll if eligible!1
Must make 120 separate, monthly payments 2
After October 1, 2007 3
Payments do not need to be consecutive 4
Must be for full amount due under plan 5
Must be made within 15 days of due date
Don’t wait to enroll if eligible!

25. PSLF - Qualifying Repayment Plan
10-Year Standard
IBR
ICR
Pay As You Earn
Others ≥ 10-Year Standard
Income-driven plans are most likely to leave a remaining balance for forgiveness after 120 qualifying payments

26. PSLF – Qualifying Employment1
Any government organization 2
501(c)(3) not-for-profit organization 3
Other not-for-profit organizations providing specific qualifying services
Doesn’t matter what the borrower’s job duties are.
Borrower can work at multiple organizations while making the required 120 payments

29. 10/28/2017
Repayment Estimator 29

30. Estimate your student loan payments!
10/28/2017
Estimate your student loan payments!
Sign in using FSA ID or
Step by Step process to Apply for Income-Based Plans
Sign- In and Complete Application
Or request that your loan servicer determine what income-driven plan or plans you qualify for, and to place you on the income-driven plan with the lowest monthly payment amount.
Want the PLAN that GIVES YOU THE LOWEST LOAN AMOUNT
Along with the application, you will be asked to provide income information. This may be either your adjusted gross income (AGI) or alternative documentation of income.
sign in and guestimate information for LOANS
StudentAid.gov/repayment-estimator

31. Postponing Payment, Avoiding Default, Loan Discharge and Forgiveness

32. Deferment & Forbearance Reasons
Unemployment
Economic hardship
Graduate fellowship
Rehabilitation training program
Military
In-school
Forbearance
Medical/dental internship residency
Student loan debt burden
AmeriCorps
Teacher Loan Forgiveness
DOD Student Loan Repayment Program
National Guard
Medical/other acceptable reasons

33. Consequences of Default
For most federal student loans, you will default if you have not made a payment in more than 270 days. 
Reported to credit bureaus
No more eligibility for federal student aid
Loan immediately due and payable in full
Lose eligibility for repayment plans and deferment or forbearance options
Collection agencies
Administrative wage garnishment
Garnish tax refunds

34. Getting Out of Default Consolidate Rehabilitate Pay off loan
Choose IDR Plan
Fast
Less beneficial for credit
Rehabilitate
9 income-driven payments over 10 months
Slow
More beneficial for credit
Pay off loan
Impractical for most

35. Discharge, Forgiveness, Cancellation
Death (DL, FFEL, Perkins)
Disability (DL, FFEL, Perkins)
Public Service (DL)
Teaching (DL, FFEL, Perkins)

37. Federal Student Aid Resources
10/28/2017
Federal Student Aid Resources 37

38. 10/28/2017
StudentAid.gov

39. 10/28/2017
StudentLoans.gov
Sign up for IBR, Pay As You Earn, ICR or REPAYE at StudentLoans.gov! 
Repayment Estimator and Sign Up for Plans on studentloans.gov MUST HAVE FSA ID for that!!!
Or Guestimate

40. NSLDS.ed.gov

41. Questions? Contact your loan servicer.
10/28/2017
Questions?
Contact your loan servicer.
If you do not know who you loan servicer is, visit NSLDS at nslds.ed.gov
Federal Student Aid Information Center (FSAIC) FEDAID ( )